How can we setup an offshore company in Hong Kong?
I would like to know about the procedures and cost for setting up an offshore company in Hong Kong and have following questions in this regard:

Q1. What are the initial, monthly or annual expenses involved?

Q2. How we can start and operate it totally virtually from our place without employing any people and engaging any office space?

Q3. What are the advantages we can get through it if we are engaged in only imports and exports via HK?

Q4. What are the legal requirements?

Q5. How we would be able to do the transactions of goods through this company from one place to another place of the world without visiting HK?

In short, we are interested to know the procedure of setting up of a simple offshore company which needs minimum legal and commercial requirements and through which we can move products from one place to another place of the world (excluding HK) by managing the operations remotely from our county India only.

We have gathered some data from internet and appreciate some real help from knowledgeable people on Alibaba in this regard.

Replying To  [v3bro]:

Why on earth would you want to set up a company in Hong Kong that has no physical address, no Hong Kong Phone number, no Office in Hong Kong, and no-one there???? THAT would be the first sign of a scammer if anyone did a search for your company in Hong Kong.

Grigo,

It is a method that some industries use (especially those where QUOTAS exist) to by-pass the quota rules.

They fulfill the quota max in country A and then also fulfill the quota for country B.

Basically its just  paperwork dodge and a method used to circumvent quotas and (sometimes) duties.

There is also another reason this is used..... but that is for products which are not traded in the open...... (I will NOT mention products that glow in the dark!)

I'll have to check, but I'm quite sure this isn't allowed in HK - you need a physical office with actual staff...

Replying to [v3bro]:

This is an answer we replied before to Mr. Braham S Aggarwal:

Hong Kong is not normally regarded as an offshore country as it is a famous for being a major financial centre, however, it is one of the few countries in the world that tax on a territorial basis. Many countries levy corporate income tax on a different basis and they tax the world-wide profits of a business, which includes profits derived from activities outside of the country. Unlike other Asian countries such as Japan, Korea, Thailand, India and China; Hong Kong does not have any exchange or capital controls which therefore allow funds to flow freely in and out of the territory.

Hong Kong profits tax is ONLY charged on profits derived from a trade, profession or business carried on in Hong Kong. Consequently, this means that a company which carries on a business in Hong Kong, but derives profits from another place, is not required to pay tax in Hong Kong on those profits. Hong Kong sourced income is currently subject to a rate of taxation of 17.5 per cent. There is no tax in Hong Kong on capital gains, dividends and interest earned.

For your questions, please find the answers below:
Q1, answer:
In HK, business registration certificate costs HK$2,600, must be renewed annually and is processed in 30 minutes over the counter or in 2 working days by post. The certificate is issued by the Inland Revenue Department.

Q2, answer:
Yes, you can conduct business from India(or other country) to any other countries in the world with a virtual office in HK without hiring any employees in HK. But you need to a legal or CPA firm in HK help you on accounting,tax planning, tax filing, etc. It costs about HKD4000 annually.

Q3, answer:
As we said above, if you conduct business outside of HK, you won't be levied corporate income tax.

Q4, answer:
Non-Hong Kong residents may form a local limited company in Hong Kong.
You need to present
a) Memorandum and Articles of Association
b) A Statement of Compliance on Incorporation of a Company (Form NC1A)

Q5, answer:
Open an offshore bank account in the place where you stayed( in India or US or whatever other country), then you can do transactions of goods through this company, but no need to pay company income tax.

For more information, you can visit HK company registry at:
http://www.cr.gov.hk/

Replying to [v3bro]:

In HK, there are many firms help you to set up the virtual office. These firms will provide your own telephone number, fax number, virtual office adderss to help you to receive the document and samples and answering the incoming calling.

Generally, there monthly service plan is from HKD200 (USD25)~ HKD1500 (USD194) depending whether you need their to handlign the incoming calling or not.

About the limited company business registration. The cost is around HKD6000 (USD800) . Above firms can do it for you charged at around USD1000.

 

Hi Cheebsie ... long time no see.

You are 100% correct ... foreign business people usually set up a company in HK for tax avoidance / evasion purposes.

One common reason is for "transfer pricing". The Western purchaser might be buying stuff direct from the mainland but sets up a scheme where his artificial HK company buys the goods for on-sale to him at a higher price leaving profits in the HK company.

He might then spend the HK money on personal luxeries in his own country via an international credit card. Pretty neat ... but is a criminal offence for cheating the tax man in his own country.

 

Replying to [v3bro]:

It looks that someone has posted this question by copying contents from my previous similar questions.



Anyway, here are the previous links for everybody's reference:

http://resources.alibaba.com/topic/40302/How_to_setup_an_offshore_company_in_Hong_Kong_.htm

http://resources.alibaba.com/topic/40092/How_to_setup_an_offshore_company_in_Hong_Kong_.htm

Hello!

Our company has many professional workers. We have 20 years experience of being producing quality ceramic/glass products. We can produce over 36 million products in one year.

If you want to know more about my company, please log on my website, 
[Mod edit - Please don't post contact information on the public forum for your own security. Users can contact you through the Trade Manager.]

Let me know the size and quantity of the products,and the size of the picture

E-mail:[Mod edit - Please don't post contact information on the public forum for your own security. Users can contact you through the Trade Manager.]

Waiting for your reply!

Best regards!

Replying to [v3bro]:
yes, you have a good knowledge!

Replying to [v3bro]:
I mean foow and aussie are correct.
They have the good knowledges on the foreign trade.